Tuesday 3 April 2012

Abbott the Boastful forgets his own Medicare safety net history




This is a typically inaccurate statement by Abbott. There was a safety net written into the Australian Medicare universal health care scheme before he became Federal Minister for Health and Ageing in the Howard Coalition Government. A position he held from 7 October 2003 until 3 December 2007.

In November 2003 the Extended Medicare Safety Net was proposed. It came into effect in March 2004 and, provided for safety net thresholds of $300 for concession card holders and low income families and $700 for all other individuals and families. In other words, after thresholds had been reached Medicare paid for 80% of any future out-of-pocket costs for out-of-hospital Medicare services for the remainder of the calendar year.

In the lead up to the October 2004 federal election Health Minister Abbott was interviewed by ABC TV Four Corners on 6 September and gave a guarantee that the safety net threshold would not be changed:

TICKY FULLERTON: Will this Government commit to keeping the Medicare-plus-safety-net as it is now in place after the election?
TONY ABBOTT: Yes.
TICKY FULLERTON: That's a cast-iron commitment?
TONY ABBOTT: Cast-iron commitment. Absolutely.
TICKY FULLERTON, REPORTER: 80 per cent of out-of-pocket expenses rebatable over $300, over $700?
TONY ABBOTT: That is an absolutely rock solid, ironclad commitment.


However, just six months later in April 2005 the Howard Government was announcing that Medicare Safety Net threshold levels would increase from $306.90 to $500 for concession card holders and other low income families, and from $716.10 to $1000 for all other families and individuals from 1 January 2006.


By 1 January 2007 Tony Abbott had again raised the safety net thresholds to $358.90 (from $345.50) for the Original Safety Net category and $519.50 (from $500.00) for the lower Extended Safety Net category and $1,039.00 (from $1,000.00) for the upper category.

All of which can hardly be characterized as Howard or Abbott being fiscally responsible in relation to health care policy and doesn’t support Abbott’s present boastful tone.

For the record. Under the Gillard Labor Government Medicare benefits for out-of-hospital services are usually 80-85 per cent of the schedule fee, except for GP consultations where the Medicare rebate is 100 per cent of the schedule fee.
In 2012 the Original Safety Net threshold for all Medicare card holders is $413.50 and the Extended Medicare Safety Net threshold for concession cardholders and people who receive Family Tax Benefits (Part A) is $562.90. For all other singles and families the annual threshold is $1,198.

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